Company Registration in Bulgaria in only 5 simple Steps

Bulgaria is a European tax heaven for companies looking for a simple taxing system with an appealing rate of 10% flat on all company profit, as well as lower labour costs and lower social security contributions. And, what is more, it’s easy to open a company in Bulgaria.

The main attraction to foreign firms is the fact that in Bulgaria the tax system is simple, with a 10% tax on profit after deductions. The country has designed this system as straightforward as possible, making it one of the most interesting options for European companies looking into company formation in Bulgaria. Additionally, there are no loopholes or complicated tax rules, and not even prepayments. 

Let’s discover more about the company registration system in Bulgaria.

Read also: How to check your Bulgarian company registration.

Is it easy to start a company in Bulgaria?

Anyone over the age of 18, regardless of their nationality, can open a company in Bulgaria. Even the initial capital, at least in a limited liability company, is a symbolic 2 BGN. The process is straightforward and, in most cases, will only take a few business days.

The process is mainly handled by a notary, with simple steps and very transparent rules. Bulgaria company registration comes with many benefits too.

An interesting aspect to consider is that in some cases it is not even necessary to physically be in Bulgaria to register a company, it all can be done remotely through lawyers – the only ones who can manage the set up of companies – and the support of accountants specialised in companies owned by foreigners, who start their activity after the registration. 

If you don’t know where to start and you need support for company registration in Bulgaria, Accountancy Bulgaria agency is the best partner you can find around. Request a free consultation to discover more.

Now the main question is: how to set up a company in Bulgaria?

Company registration in Bulgaria can be done in only 5 simple steps. As said, the process of registering a company in Bulgaria is done with the intervention of a notary, and it is common practice to draw the documents in Bulgarian and English at the same time.

Before starting the company registration process, it’s important to choose the type of company. In Bulgaria, the most common ones are (E)OOD and (E)AD or joint stock companies.

·      An (E)OOD – also commonly known as LTD- is a company with one single owner who has limited responsibility. 

·      An (E)AD, or joint stock company, is a commercial company with share capital that is owned by its members (it requires a board of directors, a deputy director, and shareholders).

Among other differences between these two company types, one to consider is the required capital to register it. In the case of an (E)OOD there is no minimum capital required to set up the company. Theoretically, 1 euro would be enough. To register a LTD company in Bulgaria is a quick and simple process.

In the case of an (E)AD, the minimum capital necessary for the company registration in Bulgaria is 25,000 euros. 

Now let’s have a closer look at the simple 5 steps required for company registration in Bulgaria.

How to register a company in Bulgaria

1.  Name the company.

First, for the Bulgarian company register, you must have a name for the company. This will be the official way your company will appear before the government and on the tax records.

2.     Open a bank account.

This step is compulsory for legal reasons. The bank will probably want to meet a company representative to understand the activity of the business. The account can easily be set up in Leva and Euros, as well as US Dollars. 

3.     Register and address.

Companies will need an address in Bulgaria to register in the country. While foreign individuals are not allowed to own land in Bulgaria without being residents, this does not apply to companies. In fact, companies can buy and own real estate property in Bulgaria without any restrictions.

4.     Government Official Registry.

Every new company must be registered in the publicly available Official Commercial Register. This is a mandatory step.

5.     Stamp Registration

Every new company in Bulgaria must register a stamp for its official, fiscal, and legal activities. While this step is compulsory, it is usually performed after the proper constitution of the new company.

Read also: Looking to move your company to Bulgaria? All you need to know.

What do you need to know before registering a company in Bulgaria?

There are some interesting aspects to a company registering in Bulgaria. We mention the attractive tax system in place, with a flat rate of 10%, no loopholes, and no prepayments. Additionally, something that has made Bulgaria into a European tax heaven today is the fact that foreigners can set up companies, using foreign capital, without restrictions. 

In fact, in some cases, there are certain extra benefits (further tax deductions and incentives) for those companies being set up in areas with higher-than-average unemployment rates and performing industrial or manufacturing work. 

Overall, registering a company in Bulgaria is not only easy, but it comes with interesting benefits. No doubt the country is proud of being a European tax haven and now, it is the time to take advantage of this.

For any further information and support, Accountancy Bulgaria is here to help.